2026-VIL-151-AAR
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SGST Advance Ruling Authority

GST – Gujarat AAR - Liability to collect GST on supply of aircrafts manufactured in India, Scope of supply under Section 7 of CGST Act - Applicant was awarded a contract for supply of 56 aircrafts out of which 40 were to be manufactured in India by Indian Aircraft Contractor at Vadodara, Gujarat and supplied to Ministry of Defence ex-works at facility in Gujarat - Whether the applicant is liable to pay GST on supplies of aircrafts made to Ministry of Defence pursuant to the contract - HELD - As per Section 7(1)(a) of CGST Act, supply includes all forms of supply of goods such as sale made for consideration by a person in course or furtherance of business. Aircrafts fall within definition of goods under Section 2(52) as movable property. There is consideration payable by MoD for the transaction of supply of aircrafts - As per Section 7(1A) read with Entry 1(a) of Schedule II, any transfer of title in goods is a supply of goods and title and ownership transfer takes place in Gujarat upon signature of Acceptance Certificate. Transaction qualifies as supply under Section 7 of CGST Act. Notification No. 10/2025 provides exhaustive list of exempted goods and aircrafts are not covered under any entry, hence no exemption is available - Transaction of supply of aircrafts by applicant to MoD is liable to GST - The applicant is liable to pay GST on supplies of aircrafts made to Ministry of Defence – Ordered accordingly - Registration requirement under Sections 22 and 25 of CGST Act, Place of supply and application for registration in State of supply - Entire process of manufacture and supply of aircrafts to Ministry of Defence is undertaken by applicant in State of Gujarat and applicant has already obtained registration in Haryana - Whether the applicant is required to obtain GST registration in state of Gujarat for making supplies of aircrafts - HELD - As per Section 22 of CGST Act, every supplier is liable to be registered in State from where he makes taxable supply if aggregate turnover exceeds Rs. 20 lakhs. Section 25(1) mandates that every person liable for registration shall apply in every such State where liable within thirty days from date on which he becomes liable - Entire manufacture and supply of aircrafts to MoD is carried out in Gujarat. Transaction value of aircrafts to be supplied is much higher than threshold limit of Rs. 20 lakhs. Therefore applicant will be required to obtain registration in state of Gujarat for supply transaction undertaken therein - The applicant is required to obtain GST registration in State of Gujarat.
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